Accor: the group loses 53% of its revenue in the first quarter

  •   04/05/2021 - 08h30
  •   DEHOUI Lionel

Following its Q1-2021 review, the French hotel giant has reported a decline in revenue. Having fallen by 53%, Accor was mainly weakened by the impact of the Covid-19 crisis on the tourism sector.

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Accor: the group loses 53% of its revenue in the first quarter
Image copyright: Kamel15 [CC BY-SA 3.0]

An "unsurprising" result

Accor is the world's sixth largest hotel group. It owns brands such as Sofitel, Mercure, Novotel, Pullman and Ibis. For the first quarter of 2021, its turnover amounted to 361 million euros. This represents a decline of 53%, which is justified by the persistence of the current health crisis.

In a statement, Sébastien Bazin, CEO of the Accor group, tried to be optimistic about the situation. In particular, he indicated that Accor is working hard to relaunch its activities. According to him, the group continues to be vigilant in reducing costs and preserving liquidity. Also, the CEO added that all the company's efforts are now focused on a strong and rapid recovery.

Moreover, Sébastien Bazin did not fail to point out that these results were not surprising. Nevertheless, he was keen to reassure that "overall business trends are improving slightly". However, HotelServices, which represents the group's main division, fell by 234 million euros to 57%. As for hotel assets and other properties, their fall was 129 million euros, or 46%.


A performance justified by the fall in RevPAR

According to the group's commentary, the loss recorded by HotelServices is proof of the deterioration of RevPAR. The latter represents the revenue per available room and is the leading indicator of the hotel industry in these times of crisis.

According to the data provided by Accor, its RevPAR would have fallen by 64.3% on a like-for-like basis compared to 2019. He also added that it is more relevant to consider the first quarter of 2019 as a basis for comparison. This avoids the various fluctuations seen in 2020, so that the numbers make more sense.

In addition, the results by geography have improved from one region to another. For example, compared to 2019, RevPAR was down 63.2% in Southern Europe. This includes a 60.8% decline in business in France, of which 74.8% was in Paris alone.


Results in other areas

In Northern Europe, the group's revenue fell by 81.9%. In this part of the world, the group was particularly weakened by results in the United Kingdom (86.5%) and Germany (-87.1%).

In the Asia-Pacific region (-54.8), China saw a decline of 42.6%. This represents a considerable loss compared to the fourth quarter of 2020 (-18%). A situation that can be explained in particular by the resurgence of Covid-19 cases between January and February.

As for India, Africa, Middle East and Turkey, RevPAR was down 50.5% compared to Q1-19. Also over the same period, results were not encouraging in the Americas either (-72.8%). Note that at the end of March, Accor had a hotel base of 5,163 hotels, 87% of which were open on April 19.